From a jan/san association president’s perspective

Despite inflation, the continued threat of a recession and lingering supply chain issues, Ty Huffer—vice chair and president of The United Group (TUG), a leading buying group for the jan/san industry—sees a lot of opportunity for independent dealers in the sector. “My wife and I used to laugh when she was an executive with the Estée Lauder cosmetics company,” he says. “We’d say our industries may not be recession proof, but they are recession resistant, since women always need lipstick and other cosmetics; and everyone needs toilet paper.”

He believes this still holds despite the significant consolidation going on in jan/ san: “There are a lot of acquisitions in our space—many companies are trying to become these massive companies while others are trying to become big enough to be bought out, and I see this continuing in 2023. But people still want that personal touch: they want to pick up the phone and talk to someone. It’s a huge opportunity for independent office product dealers.”

However, he believes the opportunities hinge on several factors. “I say this with love in my heart and not to be rude, but it’s like being pregnant: you can’t be half pregnant,” he warns. “If independent office product dealers want to sell jan/san products, they need to invest in people and inventory. They can’t learn it on the fly. They have to be able to hire a jan/san specialist, someone with years of experience in the industry. They also need to invest in inventory or use a redistributor like RJ Shinner, Essendant or R3 Distribution.”

He also believes success depends on expanding beyond traditional jan/san products.

“2020 was a record year for our members and us because of all the personal protective equipment,” he explains. “But in 2021, we topped it, thanks to food service disposables, containers and bags that restaurants needed for takeout orders. I don’t have the numbers yet for 2022. But our members are on track to match 2021—this time because of packaging supplies and the increase in e-commerce.”

And what does he predict will be the big seller for 2023? “A combination of all three,” he suggests. “In jan/san, the prices of gloves and masks are going down, but people are returning to work. It may be a hybrid model, but they are still in the office two or three days and need clean spaces. They need chemicals, towels and tissues. And e-commerce is not going anywhere. The UPS truck is at our house so much that my wife has a personal relationship with the driver! Packaging will remain strong.”

What other trends does Huffer see escalating this year? “There’s going to be more focus on sustainability, on green cleaning,” he forecasts. “Some places like California and New York are banning Styrofoam and plastic takeout containers, so they will need alternatives.”

Huffer encourages independent office product dealers to join and use TUG as a resource but says many already are members, although they may not know it.

“We give our members access to 200-plus manufacturers and service providers, such as AT&T, consultants and HR companies,” he explains. “We have an affiliate program with Independent Suppliers Group and AFFLINK. So, if you are a dealer and a member of one of these two groups, you are a member of TUG.” »

Miller also recommends doing your homework and choosing suppliers wisely. “Be careful who you partner with,” he counsels. “If I find brands selling a product for less online than to wholesalers and cheaper than I can buy it, why do I want to buy from them? Some brands decide it’s more important to win against other brands at the expense of street business. Go to Amazon and see what cost they are selling products for; if your price is higher, I wouldn’t be interested. You also need to look at your market. When we first started, Georgia Pacific was all over town. Manufacturers want growth, to know it’s a good market for them. They want something in return for partnering with you—market share. It needs to be a win-win for you both to get their support. If Georgia Pacific is already everywhere in the area, it’s not a good partnership for either of us.”

Smith cautions that jan/san and office products are not the same. “Jan/ san is a different animal,” he says. “An essential aspect of the business—of any business—is knowing what you are doing. Just as we have to learn office products, you need to be educated in jan/san. Toilet paper, paper towels and trash bag liners are stepping stones. More education needs to take place when you are talking about the chemical side. Align yourself with a chemical company that knows its stuff, offers support and can help you learn about issues like disinfectant kill times. Or take food service disinfectants: if customers use the wrong one, it can damage surfaces and hurt individuals. You need to be educated to talk to your customers.”

And Smith warns that even the “stepping stones” aren’t as straightforward as they once were: “Say 15 or 20 years ago, a standard jumbo roll of paper was nine inches with 1,000 sheets. Now, it’s nine inches but rolled looser and only 500 sheets per roll. It’s important to know these things to be price competitive. Again, it comes down to education.”

Finally, Keel advises: “It’s important to adapt to change and be sure your online platform is working well. And have those conversations. Go to the clients you are selling office products to and tell them, ‘I notice you are spending a certain dollar amount on office products with us but not on jan/ san. Is there someone in particular who handles your jan/san? I can show them our program and help you bring it all under one roof. You’ll have next-day delivery, which is easier for your personnel. We can deliver your Clorox wipes with your Post-It Notes and copy paper, which will mean cost savings.’ I once read that the average purchase order costs $80 to $100 once you add up all the time and resources of everyone touching it, approving it, sending it, etc. Wages are the biggest expense in any business, so streamlining vendors can save money not just on consumables, but on time and labor, so your customers can dedicate their resources elsewhere. We always say, ‘If you’re not growing, you are dying.’ It’s a black-and-white comment, but it’s true. If you aren’t doing better than the inflation rate, you are not growing. So, don’t be afraid to go after jan/san. They are using those products, so they should be buying them from you.”

Lisa Veeck is associate editor of INDEPENDENT DEALER and owner of Clean Communications, a full-service content-generating firm specializing in the office products, cleaning and maintenance, and healthcare industries. She can be reached at lisa@ cleancommunications.biz or 773-484-7412.